- The Finance Ministry has refused to accept the request from the Securities and Exchange Board of India(SEBI) to amend the provision that mandates transferring 75% of the market regulator’s surplus funds to the central government.
- SEBI had written to the government seeking a review of the Budget proposal that mandates transferring 75% of the market regulator’s surplus funds to the central government
- SEBI said that the proposal would result in compromising its autonomy and its ability to function effectively towards the progress and development of the Indian securities market.
- The Finance Bill,2019 has proposed a 75% cash transfer from the Sebi’s general fund to the Central government after creating a ‘reserve fund’ of the annual surplus.The transfer is proposed to take place after SEBI incurs all expenses mandated under the law establishing it.
- The Securities and Exchange Board of India(SEBI) is the regulator for the securities market in India.It was established in 1988 and given statutory powers in 1992 through the SEBI Act,1992.
- The Finance Bill is a money bill.This means that once passed by the Lok Sabha,it can become law unchanged even if the Rajya Sabha proposes to amend it.In effect,passing the Finance Bill in the Lok Sabha means that the government has chosen to ignore SEBI’s concerns.
